Key Details
The CAG’s State Finances Audit Report for FY 2024–25 evaluates Chhattisgarh’s fiscal performance across revenue mobilisation, expenditure management, debt sustainability, budget execution and financial reporting, identifying structural weaknesses despite strong revenue growth.
Area | Key Finding |
|---|---|
Fiscal Position | Revenue deficit reached 1.80% of GSDP and fiscal deficit 4.48%, exceeding the FRBM ceiling of 2.90% |
Revenue Performance | Revenue receipts grew 16.21%, driven by GST collections, higher central tax devolution and non-tax revenues |
Budget Management | ₹27,897 crore of supplementary grants remained unutilised; 25 schemes recorded zero expenditure |
Debt Sustainability | 67.07% of public debt falls due within seven years; undischarged liabilities reached ₹6,194.54 crore |
Financial Transparency | Misclassification of expenditure, off-budget liabilities and continued use of Minor Head 800 reduced transparency |
Strong Revenue Growth Did Not Improve Fiscal Health
Chhattisgarh’s economy expanded by 10.89% during FY 2024–25, while revenue receipts increased by 16.21%, supported by stronger GST collections, higher central tax transfers and growth in non-tax revenues.
Despite these gains, fiscal consolidation weakened. The state recorded a Revenue Deficit of 1.80% of GSDP, instead of the targeted revenue surplus, while the Fiscal Deficit rose to 4.48% of GSDP, substantially exceeding the 2.90%ceiling under the Fiscal Responsibility and Budget Management (FRBM) framework.
The audit also identified ₹6,194.54 crore of undischarged liabilities, indicating that part of the state’s financial obligations has been deferred to future years.
Budget Execution Continued to Show Structural Weaknesses
The audit identifies persistent weaknesses in expenditure planning and implementation.
Although the government obtained ₹27,897.20 crore through supplementary grants, the additional allocations remained entirely unutilised because expenditure stayed within the original budget estimates. The report also records savings across 69 grants, unauthorised excess expenditure requiring legislative regularisation, and 25 schemes with budget allocations but zero expenditure during the financial year.
It further highlights a concentration of expenditure in March, with several budget heads exhausting their annual allocations during the final month of the financial year, indicating continued weaknesses in budget execution.
Debt and Financial Reporting Raise Long-Term Fiscal Risks
The report notes that 67.07% of Chhattisgarh’s outstanding public debt will mature within the next seven years, increasing refinancing and liquidity risks.
It also raises concerns over fiscal transparency. Revenue expenditure worth ₹1,234.79 crore was classified as capital expenditure, while continued reliance on Minor Head 800, off-budget borrowings and funds parked in Personal Deposit Accounts reduced the clarity of the state’s financial accounts and legislative oversight.
The audit nevertheless records improvements in areas such as utilisation certificate clearance, demonstrating progress in certain aspects of financial administration alongside continuing structural weaknesses.
What is the State Finances Audit Report?
The State Finances Audit Report is an annual audit published by the Comptroller and Auditor General (CAG) that evaluates a state government’s fiscal performance, including revenue mobilisation, expenditure management, debt sustainability, budget execution and financial reporting. It assesses whether public finances are being managed efficiently, transparently and in accordance with fiscal responsibility laws.
Policy Relevance
Demonstrates that strong revenue growth alone cannot ensure fiscal sustainability without disciplined expenditure management and adherence to fiscal responsibility targets.
Highlights the need to strengthen budget formulation and project execution to reduce unutilised allocations, zero-expenditure schemes and year-end spending.
Underscores the importance of prudent debt management and timely settlement of liabilities to reduce refinancing risks and improve medium-term fiscal stability.
Reinforces the need for transparent accounting practices by reducing reliance on off-budget financing, expenditure misclassification and generic accounting heads such as Minor Head 800.
Illustrates the role of independent public financial audits in strengthening fiscal accountability, legislative oversight and the efficient use of public resources.
Follow the Full Report Here: State Finances Audit Report (Government of Chhattisgarh, FY 2024–25)